Microeconomic Principles: Legalization of Cannabis

2-3 Pages with sources

Recently, a few states have legalized the recreational use of cannabis (marijuana). Respond to the following questions/topics:

• How has the legalization impacted the market for this good? Very briefly discuss the price elasticity of demand for the good and what determines the elasticity.
• In light of your readings for this week, how would you anticipate the market to change over the next few years?
• Briefly discuss a substitute good and a complementary good for legal cannabis.
• Create a supply-demand graph illustrating one of the shifts discussed in your paper, and explain the shift.